The Southern African-German Chamber of Commerce and Industry (SAGCC) conducted a
survey of European enterprises in South Africa in the period February-June 2013. The
survey includes member companies and other enterprises active in the South African
market. The following participated in the survey:
Austria : 13 companies,
Denmark : 6 companies,
Finland : 3 companies,
France : 22 companies,
Germany : 95 companies,
Italy : 9 companies,
Netherlands : 15 companies and
Sweden : 1 company.
The total number of completed and returned surveys stands at 163. The below mentioned
results refer to previous surveys, predominantly among members of the SAGCC, conducted
biannually since 1993.
The perception of the current economic climate has declined from +31 points in 2010
-35 points in 2013. About twice as many companies regard the climate as “bad” when
compared to the previous survey. This has constrained decisions on new investments
and job creations.
The general political and economic climate is regarded as “continuously bad” or even
Concerns about Broad-Based Black Economic Empowerment have increased since
2010. More than 60% of the respondents view B-BBEE as a costly exercise with no
tangible benefits for their day-to-day businesses.
Respondents underline the lack of competence of the civil service (78% of negative
opinions) and about the excessively high level of corruption (seen by 87% as
“pessimistic” or “very pessimistic”).
Violence and crime, labour conditions, productivity levels and electricity prices have also
been growingly affecting the investment and business climates lately.
The SAGCC Index is an important tool in the analysis and portrayal of the current economic
situation, and is interpreted in a manner similar to the “IFO Business Climate Index”.
Based on the current trend, the SAGCC index will soon reach the level of 1998 (-57, data of
members of the SAGCC only), its lowest point in 14 years.
It must be noted that the survey did not take place under any specific political or economic
circumstances, which could have influenced the results